Published
01/20/2026, 08:40The Kaindy Kant sugar factory placed dollar-denominated bonds, offering the market an instrument that allowed the company and investors to establish mutually beneficial financing terms. For the issuer, the issue became an alternative to a foreign currency bank loan, and for investors, it was an opportunity to earn a higher return than on deposits.
The coupon rate on the bonds is set at 7% per annum in US dollars. This is lower than the average rates on foreign currency loans for businesses, which, according to Kaindy Kant's estimates, start at 8% per annum. At the same time, the yield exceeds the rates on dollar deposits, which in the banking sector of Kyrgyzstan, as a rule, do not exceed 4%.
“The issuance of dollar bonds allows us to attract financing that is cheaper than bank loans and at the same time offer investors a yield above market rates,” notes Alexander Mikhin, Deputy Director General of the Kaindy Group of Companies..
Thus, the bond loan allowed the sugar factory to establish a direct financial relationship with investors, eliminating banks as intermediaries in the chain.
According to the terms of the issue, the nominal value of the currency bond is $100, and the minimum purchase package is five copies ($500). This makes the instrument accessible not only to institutional but also to private investors. The yield on the issue is 7% per annum in US dollars, with coupon payments made quarterly.
The placement of Kaindy Kant foreign currency bonds on the Kyrgyz Stock Exchange began on December 22 last year. During this time (until January 15), a total of 19 transactions were conducted through the KSE, in which 875 bonds worth $87,500 were sold.
The proceeds from the bond placement will be used to support operational activities and investment projects. This will allow the company to maintain and expand its cooperation with domestic farmers who supply the plant with sugar beets, as well as to maintain processing volumes.
Today, the plant processes up to 3,700 tons of beets per day, and by 2030, it plans to increase its capacity to 5,000 tons per day. In 2026, the company will also launch a pilot project to grow sugar beets on 170 hectares using modern irrigation systems.
The company emphasizes that investors are investing in real production. The plant has been operating since 1963, and in 2024 it produced 72,000 tons of sugar — the maximum volume in the last decade, which was completely sold on the market.
In addition to the domestic market, Kaindy Kant is actively developing exports. In 2024-2025, sugar supplies to Uzbekistan exceeded 34,000 tons, and supplies to Tajikistan have also begun.
“Not every company can enter the bond market — this requires transparency, a sustainable financial model, and an impeccable credit history. In our case, the volume of the bond loan does not exceed 5% of the total financing requirement, so we are confident about servicing it,” emphasizes Alexander Mikhin.
